here's a quick look at the headlines this morning. more russian troops have moved in. investors are bidding on the prices of safety. gold and treasury. we're waiting to get february sales for automakers today. nissan already reported their sales come up almost 16%, beating estimates. chrysler is due out at any moment. the microsoft newly appointed ceo is shaking things up in an effort to turn things around shuffling management. as we learnedme two are leaving microsoft. ryan, tell us what you know right now.

russian troops are taking control. groundldiers on the working together with the militia. yesterday, surrounded military bases there. many people expect more will be deployed. addressing business leaders, about 25 minutes away from me, in a conference here. he has said russia's are refusing to recognition. -- direct negotiation.

no bullets have really been fired yet. it is possible this could all de-escalate at some point. it does not look like that is very likely right now. go, tell melet you about the people in the ukraine. how nervous are they these tensions can affect escalation military action? are you less people on the streets? >> people are anxious. they are very worried. most are resigned to the possibility they may have lost their country. they do not see it is realistic to fight against ukraine. -- country spent $4 million

the russian military spent $7 billion. there is still a revolutionary spirit here. there is not a lot of anxiety. everyone is celebrating. a tad bit anxious it could spread to the east. >> thank you. ukrainections in the have led to the worst and off in the west of russia since the end of the cold war. i am joined by peter cook.

tell us what the options are for the president to rein in his counterpart, vladimir putin. >> they are not great but he has options. military is off the table. they are offering and offramp -- president clinton and offramp -- they are offering president putin an offramp. john kerry in his tour on sunday talk shows mentioning and highlighting there will be more pain to come unless he backs down. that will lose the glow

came out of the olympics. g8 if not remain in the this continues. american business may pull back. there may be a further total of the ruble. a jesus christ day. -- a very bad day. then there is the offramp, the motivation to president clinton paragraph -- mind usedis the pretexts he has so far during this action. maybe he will back down. he did not close the door on seniorcording to

officials. >> i went i -- i read one disturbing detail. chancellor angela merkel said to obama that putin is out of reality. >> i think he is rational. a zero-sum world, which most of the rest of the world has moved on from. i do not think any of the measures peter just laid out will move him. i do not see an effective course. he cares more about it than we do by a lot. historically, these economic --

half i do not see the european union agreed to embargo 30% of their gas supplies. the europeans do a lot of trade with russians. work? class i do not see us coercing him out of this. he will not suddenly have a revelation and say he made a mistake. go with somey diplomatic settlement. i think it would be very provocative for russians out right. they may be able to get something in between an autonomous entity.

there is a little part. if russians did invade georgia. it is really run by russia. >> i just want to pick up on what richard was talking about get his take on whether or not food will be satisfied -- whether or not putin will be satisfied. right overot units the board and are having exercises. they go to other parts of these are ukraine. does that not change his dynamic substantially? >> that would. the russians have forces there already. what you're talking about is bringing in new forces through eastern ukraine from russia.

that would be an act of war. there is no other land bridge except the one through ukraine. >> what the secretary kerry hope to accomplish their? class get a really nice photo the leaders of ukraine to show u.s. support for them. we are also talking about a financial role for the united states. with has secretary lou talk about it. most of -- most immediate short-term health the united states can provide. that is money. i would watch for that as well.

you.ank our chief washington correspondent. coming up, onto a lighter subject. the early days of pinterest, the fast-growing social network that was not a soul -- an overnight success. " was out of this world. yes, we had to say that. not the best picture. more on the oscars last night in a moment. ♪

♪ >> pinterest is poised for a big year in 2014. a study shows mobile

transactions through the site have increased nearly 80% in just the past year. emily chang set down exclusively with the pinterest ceo who spoke a little bit about the company's beginning. a long road. but i think most things in life worthwhile take a while. my parents are doctors and both of my sisters are doctors. that is minimum, an eight year commitment, usually 12. that has always been the back of my mind when i think about how long they should take. for ak it is a long road lot of folks. if you feel like you are learning and you are having fun, now is the time to try it. moment where you said, i need to make sure i do not give up. in the early days, it took a while to catch up. >> yes.

there were a lot of times were you get a little discouraged. me, what was helpful was having people around me that i trusted and they cared about me first and the company second. i was folks like my girlfriend then and now my wife. my cofounder. friends who were there to say, it would be great if you kept going. question how you manage hundreds of employees and you have come such a long way. what is your vision for what pinterest will become? class we think of it as a visual discovery tool, which people can get inspiration and plan things in the future. build toward to that. i have so many folks i look up to. people like you on must are amazing, literally making rockets and electric cars. i look up to other entrepreneurs. .ack dorsey of square i look to people more into arts

and science as well. anyone trying to build things that make the world better. i think it is really cool. >> specifically along the journey, who has given me the est advice? >> one piece of advice i got was from kevin hart. talking and i said, i know pinterest will not be one of these huge tech companies and he said, why not? it could be. i think that was a cool thing to say. so many people give you reasons why something will not work and he was saying, what if you imagined it would work and operate that way at go i am thankful for that advice. >> that was emily chang with them so moorman. the latest was between men's wearhouse -- men's wearhouse.

it will increase its offer from $65 per share to 63. cristina alesci has been all .ver the men's fashion from a does it look like the deal is finally getting done? >> it looks like it is full steam ahead, for sure. for a long time, banks were resisting them, beating it back, announcing a crazy deal to buy eddie bauer in an attempt to make itself bigger in, nation with men's wearhouse. more improbable now that you are sitting at the table, and banks kind of look like a hero because it is getting the money it wanted all along, but even if the two sides agree on price, it is not a done deal. >> because there are many more hurdles. >> there are. this deal raises antitrust scrutiny. regulators will have to sign off

on it. if thing i've heard is that it wants to be difficult, which it has been over the entire demand, it could protections from men's wearhouse in k's regulators do not sign off on this deal. that could make men's wearhouse e -- uneasy. it could complicate negotiations going forward. times, in these kinds of sometimes the acquirer, in this case banks, would demand a high water provision, which would force the to close even if regulators do not sign off on it. >> on another front, as we mentioned, retail m&a is exploding. a japanese retailer might be going over american iconic band j.crew. >> which is owned by private equity. fast retailing has ambitious

goals and is becoming the largest retailer in the world and not only by geographic expansion, but you can see all the brands on the screen i now. it has been doing that by going to the higher and. it has been acquiring the most well known brand fast retailing has, uniform, the gap of japan. its president wants go to high-end. j.crew could help him get there. >> with that be their biggest acquisition yet? >> it would be a massive acquisition. their biggest. it does not come without risk. j.crew was a buyout. it has got a lot of debt. what is not being talked about here is private equity owners have taken money off the table and increased debt. they put a lot of debt on the

company and paid it down somewhat and then put more debt on to pay themselves in dividends. dealuld work against a with retailing. what makes it very different from some of the other japanese buyers we have seen coming to the u.s. for growth, they have been disciplined on price. >> they do not want to pay too much. >> it could go public at an attractive valuation. they have a lever to pull. >> thank you. our deals report on retail. we are waiting to hear from chrysler. inford auto sales are out the next few hours. we will bring you the results i want to head first to matt miller, who knows everything about autos. they beat expectations. >> normally, we have chrysler out. they are pretty punctual previous to their full takeover by tommy companies. the east always come just around 8:00.

the italians now old -- own them fully. we expect chrysler to do the previous big three automakers out of detroit. the only one expected to gain ground with an 8.8% gain in the month of february, we are expecting gm and ford to have a decline in february sales. the reason is obviously the weather. what we expect to see is a pickup in four-wheel-drive vehicles. since chrysler is so strong with his jeep brand and a cherokee and the wrangler, we expect more people to have gone out and bought those and fewer people to go out and buy something like a ford fusion or a chevy sonicare ford and chevy have their truck businesses and all-wheel-drive businesses and they will do sweet business with those as well. back to you. >> thank you so much. wait for those auto sales over the next few hours. we will talk about hollywood and all the movies that won

awards. we will be back. ♪

>> european stocks down two percent across-the-board. that will beata something for investors to chew on. spendingincome, numbers and manufacturing out at 10:00 a.m. here are our top headlines this morning.

sold to anty affiliate for $2.2 billion. more than $3 billion in cash, some of which will be used to reduce their debt. microsoft's new ceo is shaking things up. putting the former hillary clinton advisor -- this according to people familiar. they say the top two microsoft executives are leaving the company. berkshirefett says hathaway has plenty of ways to put its cash to use. it posted record earnings last year. the 12 alien dollar investments take times. attempt on future deals. they did the deal with three g. worlde news around the

continues to play. the main question for investors this year, how strong is the us economy? we will get income and spending numbers in a few minutes. us economics editor is with to give his take on what we will see with those numbers. >> everybody has wondered whether or not is the weather. you can go back and i will show you a picture of what it is all about. this is a snowstorm back in january. afton so many at this point. it has played out with all the data. we know people could not get to work and jobs numbers were depressed. were people spending. we know they have to spend more on utilities. .e will watch them mix your utility bills will go into services. if that goes up on it is still good news in the long run for the economy. still spending money, just

averted away from other things. asterisk -- as we watch income we want to see what people are earning. we look closely at wages and the fact people were not getting hired. if we are still getting higher wages it banned salaries and there was a big drop off in december, that is a problem. the things we have to keep a close eye on. the forecasts are for small gains in each. small gains will be better than nothing. to your point on snowstorms, we seem to have dodged another one today. know whether or not some of the growth will come back toward the end, the latter part, of the gear. york and newin new england a lot more snow. they're getting a lot in mid-atlantic states and the midwest. probably some of it will not come back.

we probably will not get a clean read on this until april with march numbers, unless march turns out to be as smelly as we have seen. numbers.hould have iso >> thank you. we will be back after those numbers are out. other numbers are out, chrysler auto sales. matt miller is back with us. >> it is the all-wheel-drive vehicles that help chrysler. you will see automakers come out salesy long that say the fall because of winter weather. that is not untrue, but all-wheel-drive's, especially trucks and jeeps, will do well in that kind of weather. chrysler sales were up 47%.

it has been the best brands since the takeover. it is the brand with the biggest cachet. the brand with the most innovation as far as new vehicles are out. the cherokee has a very successful vehicle, the new wrangler is a very successful vehicle. they do well when it snows. the dodge brand fell 11%. they did well with their trucks. heavy-duty trucks, up 19%. the trend likely continue. ford and gm in about an hour and an hour and a half. you can see drops their according to analyst's we the overall number. you will probably see gains for their 40 we'll -- for their four wheel drive. >> thank you. we are waiting for those numbers on income and spending.

i am not seeing it on my screen right now. here? going on >> it is snowing in washington. congress will try to post the numbers online. it seems to be taking longer than we expected. we sought back in february, the same issue. a bunch of numbers did not get posted. personal spending. up 4/10 of one percent. we do not know what the breakdown is. that is better news than what we expected. this is january. you have to be careful with incomes. we get transfer payments from the government and social security. insurance rebates, things like that, that affect income. until we see the breakdown, we do not know how good news spending is. >> look at the revision.

>> the revisions still goes down. 4/10 in december to 1/10. we knew retail sales have been revised lower. this confirms it. when you add the two together, it will be a wash. people will have to throw up their hands and say, what does wait for? we have to the weather to clear up. >> thank you. we will go back and continue to watch the numbers as they come out. consumern the american and the american economy, president obama has talked a lot recently about reducing income inequality in the united states. in a new opinion piece, the chairman of boston properties, income inequality is not so much the problem as income inadequacy. --

he joins us now on the phone. great to talk with you again. tell me first what motivated you to write this? why did you want o tackle the whole issue? >> it is one of the major issues facing america. jobs as well as been the most important issue in america. the best family policy in the best fiscal policy in the best social policy we have. the weakest job market in the last four or five years, longer than that. since i have been a grown up. i will also tell you if you saw the congressional budget office projections, that came out a couple of days ago, they indicated the economy would be growing around the two percent rate. for the next several years. and in the next three or four years, the monthly job increases will be limited to 70,000.

that is a disaster for america. we have got to take a different policy. >> what i found interesting is you tackled head on those who youe the one percent, who are a part of, who say they are driving the income inequality and they are the problems here in the economy. you say, do not blame one percent, point government for not creating the animal spirit that allows the economy to create jobs. are you deflecting echoplex no. the basic and historic role of the private sector is to pursue their own interests. people do not say themselves, i will not take compensation for whatever i am doing. because somehow this'll be distributed to another group of people. what we need and what we have is where we have a lot of jobs that are much more remunerative to the people.

they require education and training and skills. there.inds of jobs are the people who have those skills or education are in short supply. that is why i said we ought to education andving technological education, graduate education, and supporting education in stem. the growth of the economy is and that is where it will be for the future. we do very little to do that. illustration, to import people who do have these educations, graduate educations, we have 190,000 h-1b visas for this import of talent. it is now down to 65,000. this is insane. every country in the world wants this kind of technological and educational educate --

engineering capacity and return them away. fromhear this often various people that we need to improve the education system. nobody would argue against that. when you dig down deeper, i need to figure out and find out what exactly do you mean by improving education. some would say, look at our education system. as wejust as an equal have seen in the economy. is a fair point. what can the government do? the as they could increase number of people with stem education coming in from abroad who would provide a lot of intellectual firepower, you have to provide scholarship programs for these students, so there is government support for their education. exactly what we need. they are job multipliers.

for every person with that kind of training, we create five more jobs. it is exactly what the government ought to be doing and exactly what i'm trying to recommend. >> on the flipside, you mentioned government has only hindered the animal spirit. it is not allowing businesses to flourish and create jobs. what has the government done in your view that has quashed the animal spirit? anybody with the rhetoric to this ministration and have seen their policies, where they generally tend to blame a particular part of the community that is frankly the people who are doing well. it is a political strategy. a shift the blame off to group doing well and saying, it is their fault or they are grabbing at all the best economic opportunities in this country. economicmic a -- the opportunities are available to

everybody with the skills. if the government will do anything, they have got to enhance the level of skills modern economy and that requires a higher level of education. if we have to provide 2 million scholarships every year for people who take courses in engineering and science and ,ath, where we have a shortage i would do that. instead of spending a lot of money on other programs, i would spend money on education at levels we have not before. >> on that front, the government or the president has proposed raising the minimum wage and making that a federal, universal, national increase. are you for that? come ihis stage the game think it would be counterproductive. yes. this is another way. if you raise the price of goods, it is only natural people will reduce the purchase of those goods. it has been the story of our

economy forever. if you translate that to jobs and raise the wages, by definition, you will hire fewer people. check it out with business. you it is anl ordinary course of life. if you had money going into , andtion at all levels create literally millions of scholarships into the higher educational fields, concentrating in those areas, stem education, we have a huge shortage and it increased number of startups. start ups, if you look at the statistic, that has been the cause of all of our increase in employment in the last years. we have a shortage of exactly the talent you need to multiply the number of startups. >> thank you. no doubt small and medium-size s are job creators. thank you for joining us.

still ahead, equity futures are sliding this morning. not being helped at all by income or spending numbers. we will walk you through the opening bell with our guests. google is flying high and we are not talking about the stocks. the company is now building its own air force terminal. it is. that is coming up. ♪

moneying a lot of people if you put your best on that picture. it was the first movie -- it made history as the first movie from a black director to win the film industry posses highest honor. everyone deserves not just to survive, but to live. it is the most important legacy. i dedicate this award to all the

people who endured slavery. and 21 million people who still -- slavery today. thank you very much. thank you. [applause] >> the director of the movie. there were also lighter moments throughout the oscars. ellen degeneres played it safe. she posted a selfie that shut down twitter. within this morning to look at the big take away is the editor of box office media and paul sweeney. like abc andeemed the oscars played it safe. no seth mcfarlane dirty jokes at all. would you say it was an all-around success? yesterday it is such a big

broadcast, must-see tv, a big event. great event for abc. they sell their ads for a lot of money. it is a moneymaker for abc. it is a great platform for all their shows. onsaw every show coming up abc. we saw some promo for it last night. >> what happened to the movies after they won? >> after they won, we will probably see a slight him at the box office. movies like 12 years a slave helped outside the united states. drama thattorical will not get a date international run. it has got a big expansion overseas and is now up to $90 million internationally. is almost twice as much outside of united states as it

is in inside. >> and servants of the overseas markets, the biggest ones to make money off of his china. >> yes. not too many films can get in. a lot of films see china as a bonus rather than a firm opportunity to make money. there is a quota for imported film. >> let's turn to another phone that did not win any oscars but has fan favorites. "anchorman two" is being rereleased in an r-rated version. >> the studio is trying to make incremental revenue. the strategy was typically reserved for the dvd window. >> why do this? has beend market fairly weak and declining. producers were thinking this might be a different strategy. >> it is a great opportunity for

them to go to theaters and connect with the core audience. the first film came out in 2004. if you were seven years old, you have grown up with the characters. >> you should not be seven years old and watch anchorman. >> you only need to be 17 to "anchorman two." the core audience have grown up with it and are familiar with the characters and they can see the racier version if they wanted. us.hank you for joining and to our media analysts. we will be back in a few moments. ♪

>> the ongoing saga for bitcoin. adding insult to injury now. this is mount docs -- gox. . it was once the world posses largest bitcoin exchange -- it

came out somebody had stolen 700 50,000 bitcoins belonging to customers. they hacked into it. that was their customer base. they are getting lost in translation. they have been complaining they're getting operators who only see deaths speak japanese. he then one percent are from japan. $480 million. just like that. still ahead, we will talk warren buffett with tom rizzo. stay in the loop. ♪

builds hisriches man

father's shop into the biggest clothing retail shop. we are joined by bloomberg billionaires managing editor matt miller. we may not know a lot about him up we know a lot about his brand. >> right. retailer thate has taken america and the world by storm. take on someg to of the world's biggest retailers. hmm, on every block in new york city, he has and istaken his brand trying to take it to america and buy up land and become a global retailer. we know he took his father's tailor shop and built it into fast retailing. everything in-between is constantly looking at the little details. if you going to the store, you can walk in front of a mirror .nd change the color

everything is down to the finest detail. are wellmployees trained and spent a lot of time training and making the experience of going into a store really impressive and bring people back for a second or third time. in a very japanese management sent, informed and focused on attention to detail. the 41st richest person in the world. asia posses riches man, tell us, he had a dispute about how much he is worth in the press. did and then he did not. he was on a conference call with reporters friday and said his net worth was 40% undervalued by foreign magazines. the next they came out, he said what he was referencing was 10 years ago. >> maybe you should say, i am not worth anything, so get away from you and stop charging me so much.

thank you so much. we would be -- we will be back. ♪

>> welcome back. here's what we're working on. the obama administration is considering whether to impose economic sanctions on russia. more russian troops you'd just moved into the ukraine premier region over the weekend. a global selloff occurred overnight. futures indicate they will open lower. we are getting february car sales figures today. we will get a snapshot of the american consumer. estimates.at sales rising 16%.

warren buffett, berkshire hathaway, reported fourth-quarter profit growth. 10% on gains and insurance units. despite a strong operating performance, another year in which it trailed the s&p. the billionaire chairman and ceo said a fresh goal in his annual letter, saying he could beat the index. no,more, i want to bring in who covers this for bloomberg news. also, russo. , and i have known each other for years. thehave been going to shareholders meeting for how long you fell 28 years. you have -- noah has gone for the last three years. let's start with you and your big take away. >> a confident letter. a bit educational. he wants us to understand just

how much value he has created. the question about the out performance and underperformance s&p over five years is quite irrelevant from his perspective in this report. but to let us know geico has a $20 billion increment to goodwill if you accurately valued the business. it is very important. those types of numbers reinsurer -- reassure investors. his general comment, intrinsic value is much higher than the reported book value and it is growing at a handsome death handsome rate. -- a handsome rate. >> despite this performance of his operating unit and how well the investments have done, the big four companies, it is going to lag the s&p because it is so big. there are not that many acquisitions. >> that is a big thing he has

been telling us for years. we have been talking before this that you do not see the word million a lot and reports anymore. we're talking about billions. to thisompany gets size, increasing the value is a bigger lift. token, there were a lot of things in the report and buffett spent a lot of the letter highlighting the ways he was able to invest in big ways, whether it was the utility they bought or heinz. used a partnership template going forward. so yes, that was certainly news. want to bring in some league, who slipped in here unannounced. i wanted to bring you in on this conversation because anybody in the investing will be following what warren buffett says.

it is interesting buffett had a little bit of a date to strategists and analysts on wall street. i want to read part of what he said in that letter about people who predict the market. for me, macro opinions are listening to the macro opinions of others, it is a waste of time and is dangerous because it may blur your vision of the fact that are truly important. as tom russo said, he was trying to give lessons to the smalltime investor. how do you react? >> i would not disagree. posted will tend to think they can tell the market what to do. matter andopinions when the market does not do what they think, they think the market is crazy. christ that is in your job. >> what is different about our approaches weekend to let the itket dictate what we think

is telling us. for the last four years, we have not been trying to tell the market to go up. we have been recognizing we have been in a bull market. i would agree a think most people tend to think their opinions matter more than what the markets are telling us. takeaway to mene is his ability to deploy capital and his willingness to do capital, and the his ability to do nothing for a long time. street, that wins every time. he is not silent. to act on aged daily basis. that allows them to swing when the pitches right. a real hallmark for all these years. the ability to do nothing is so highly undervalued. when heems to differ was talking in 2013 that his performance way underperformed

them. >> yes. they have a slightly different amount of cash. each of their portfolios is around $7 billion now. berkshire posses overall equity portfolio, including their chunk, is something like 117 billion. that universe of companies where you can put several billions of dollars. qwest another probably important take away, his returns have really been driven by some outlier gains. if he will spend his performance, i do not remember the number, but his top 10 investment takes, his performance over that cycle would have been pretty average. so i think a lot of the things, and i think it is his patience, he is waiting for the fat pitch, -- >> when you say outlier gains, you mean -- >> some of his holdings have had extraordinary returns. the rest of his performance really matched the market overall. >> i am delighted he is that --

he has had the ability to commit capital. it is all about what money he puts on what ideas. the fact he has those kinds of ideas deeply waited in many did well, it is the source of our return. then his ability to put money to companies,is -- through his bolt on, and especially the big three, rail utilities with regulator rate return, meaning we have a process -- prospect of putting money to work for a long time. we are burdened with a lot of capital. it is an awful lot. over time, we may see dividend policy creep in. we know there is an aggressive type -- buy back future. comment i thought was interesting was saying that, as you say, and you hit the noun ahead, it is deploying the capital intelligently. that is the key difference between whether he out or underperforms.

, someone whoead observes him closely said, it might be energy. energy will be the big area. is for the most part a stable and secure industry. there are dominant players and you can have a monopoly hold on a certain sector of this group. is that similar to what you have heard? areay could be an active for him? >> certainly, he hinted their big energy unit, they did the deal and the battle last year. he said it would not be their last major acquisition. i take him at his word. this industry has room for consolidation. there are utilities out there. i do not know if it will happen this year or when, -- >> let's be clear.

i think what you're referring to and powertribution generation, both of which enjoy great labor returns in capital. let's say he could deploy capital at 12% with flow that could cost them nothing over time. it is extraordinary. then there are huge amounts of capital. as to the actual producers of energy, exxon and the rest, i think he struggles with what he thein this as his test, hundred year test. he talked about the new acquisitions still around 100 years. exxon has been around for hundreds of years, -- a hundred years, it is not clear they will run out of energy along the way. >> what about you and your view about energy? >> i would probably agree with broad strokes. a business model based on reserves and extraction is not -- the samee him

endurance. he think about the analogy to rails. once the infrastructure is in place, it is difficult to develop a competitor. i can see the logic in owning a distribution type company. it is different. >> getting back to what buffett was talking about he spent quite a bit of the letter talking about the average investor who as a legend.im was, in hissaying view for the smalltime investor, buy-and-hold will continue to be the best strategy. in this market, is that still the best advice? >> it is. discuss whether or not he has value over the s&p. you would know better than anyone else the average investor never does as well as the because they never stay

and when the times get tough. they generally underperform. the beauty was berkshire. people trust them to be there steward and stay with them. someone at berkshire has realized that and they are piling in now. >> itld you agree? depends on the audience. i think his vice -- device is valid for individual the vet -- investors. you take 10 years and let time work for you, markets are up most of the time. why try to time your entering an xit several times the year? the time to be cautious on markets is when we are about to have a recession. calls sinced at

2009 come it has been a huge mistake for people to come in and out. it is better to say it has been one market and the bull market will and when we have a recession. so i would agree. >> on a final note, i want to read another part of the letter i thought was interesting. this topic you know quite a bit a lot -- about. there has been significant value created for you on several matters unrelated to your portfolio activities. both men have berkshire blood in their veins. what was he alluding to? loyalty, the way they think, not just the way they invest but the way they might go about doing -- about doing deals. is am in a. there was a bankruptcy situation with red cap a year or two ago .nd they did a deal recently

>> you apply that all the way? >> at the end of the day, he is the ultimate capital allocator and a cheerleader but when huge responsibility has been over onrs, guiding subsidiaries reinvestment decisions, he cannot do that. he could not do that 50 years from now and he cannot do that with growing demands in his time. they can. when someone wants to consider an acquisition, why not go to those? has deal sense because he has been involved with an enormous number of deals. still looking for a bear to bring onto the annual meeting to ask questions. you're not a bear. maybe if you turned bearish, you would be the one to ask. >> the amazing thing is the last bear had so little to talk about. it was the most amazing thing. >> he kind of boot.

>> it is a tough crowd. >> it is. thank you so much. tom, thank you for joining us. -- stay with us us. up next, we will get a look at google's but -- next big thing. an airport terminal in california. ♪

>> there is breaking news now. we're getting word from bidders to sell off the pasta sauce maker, ragu. working with morgan stanley on a deal said to be seeking as much as two million dollars for the sale of ragu. airport for the private jet, it is taking off. airport and city officials broke ground on a project last week expected to open in less than two years. the google airport terminal. terminal at san

jose airport. jon erlichman has the story. we will get with him in a few moments. he is with us. there you are. more about the google terminal. glass i have got to get down to the airport. it is going to be interesting. thell got started because founders have got a lot of planes. in our reporting, our understanding, they have got as much as doesn't -- a dozen planes at any time. them at abeen storing nearby airfield. the lease was going to expire and that led to the deal in basically a parking lot. you're looking at images of what it could be, but it is basically a parking lot adjacent to the san jose airport. here is the gentleman who basically want the operation for the google guys. a lot of them cannot be based

in the bay area for lack of facilities. >> in case you're interested, it tots 15-20 grand a month store a plane in such a capacity. if you are ever in such a situation, you know. >> that is a lot. thank you so much, our bloomberg senior west coast correspondent. we will be back in a few moments with the opening bell. you do not want to miss the top 10 trades after the break. ♪

>> we are a few moments away from the opening bell. future sliding this morning. a global selloff.

side, --xed income keep it here. ♪

>> welcome back. i am betty liu. it is 26 minutes past the hour. whom are televisions is on the market. olivia sterns has the latest on futures. it is looking to be a pretty much all read day. >> it is indeed. take a look era futures trading lower ahead of the opening bell. this comes following the global slump we have seen in equities and the rising tensions in the ukraine. in vix thepop volatility index trading out 21 after closing below 17 on friday. i want to show you what is happening to the treasury markets. pouring into money bonds. the yield on protect your is down by 2.5 basis points. the lowest level in your --

nearly a month. 2.6%. little economic data out this morning, showing u.s. personal spending rose more than forecast for the month. we are expecting the 10:00 a.m. u.s. market pmi numbers expected to show manufacturing did pick up in the month of february. we will be on the markets again in 30. >> thank you. open on thisd the monday morning. i want to bring in john, the managing director of a hedge fund and former executive at pimco. his call is that global forces are putting the u.s. recovery at risk. a u.s. equity strategist at j.p. morgan is to with us and his call is he sees global growth stabilizing, thereby his call on the s&p is that it will game by double digits before year-end. let's start with you on that. you are and have been for quite some time a pretty big bowl on the markets. what gives you the confidence?

>> when we look at what really matters for the next few years, it will be corporate balance sheets. companies have a lot of cash. they have been cautious. needlessly cautious. it results in a situation where stock has to be replaced. we have a cap spend cycle coming. when i look at consumers, hugely important to the economy, record well from all the appreciation of stocks and housing. doneeleveraging cycle is and banks are finally beginning to use lending standards, which have been unusually restrictive for the last 10 years. tells you they are starting to ease? >> we can see it in measured data. if you look at data from fannie and freddie, leicester, the average score for an approval loan was down 13 points. fromwhere its average 2009-2012. but it is still almost 30 points higher than it was in the early 2000's. we have a lot of room for credit to use. optimistic? om too

>> yes, obviously the largest provider of credit in the world is the fed and the other global central banks. they are easy and committed to stay easy for a while. but the easing is done in terms of any more easing and the fed has been talking about ultimately tightening, which has always been the pain of the markets. >> what i'm saying is, are you less optimistic about the economic growth prospect and tom? -- than tom? >> i am. fourth quarter gdp was revised down. people point to the weather. we have rising commodity prices. crude oil is up 12% from its recent january lows. see ae starting to tightening of conditions on the commodity side of the equation and the fed side of the

equation. needless to say with global tensions rising, there is a bit of a pullback. >> you say prolonged on treasury, 10 year >> absolutely. we have flowing economy and china. that tends to put downward pressure on yields. gold, crude oil, commodities, they have outperformed equities in the recent weeks. >> is that too cautious? i may not disagree with that do not view that as negative for equities. as stimulusto act for households. it will lower the interest rate for mortgages. we have had falling gasoline

prices. when we talk about some of the headwinds late last year, and had to do with rising commodity prices. it is too easy to write off equities and say we are at new highs, so you have to be cautious now. historically, when you look at stocks and a breakout to new highs, you embrace it. i am shocked at how many --.stors feel the bests right before they're going to end. he was hinting that we might be at that point. >> i did not hear his comments. if he is trying to look, the only way you can measure it is at the price level. it is not reflected in sentiment or any of the individual investor surveys. it is tough to make that

argument. >> john, would you agree that if we saw a continued downward trajectory for treasury yield that that is not necessarily meaning stocks will go down? >> you have to look at cause or effect. the lower treasury yields in my outlook is in effect of a weaker economic outlook, but to point points,to tom's strong high andrelatively earnings, if you look at guidance, it is extremely negative. your formerbonds, employer, pimco has been hit quite a bit with this decline last year in bond yields.

one of the biggest outpourings of capital coming out of pimco. as you know, there has been a lot of speculation about what is happening between your former boss in mohamed el-erian. one part of the story that was laid out by the wall street journal between bill gross and mohamed el-erian. you are quoted in this article and i want to read part of it. you suggested mr. gross write a $10,000 check to pimco's charitable foundation. less than the year ago, you were named a pimco partner. did you have to buy her way into a partnership? that is how i read it. gross hast is that been a great manager of talent.

he motivates people, gets people excited and sometimes has a hands off approach and allows people to run their own organizations and shops. there is a bit of a tempest in a normalin terms of al evolution. i am impressed by the best-performing and best managed investment operation the world. >> you don't believe that mohamed el-erian leaving is going to hurt pimco? >> i think he was a great organizational asset to pimco. know most of the six deputy all of them blank, in their own right, as some of the

best investors in the world. >> expect bond investors are going to be nervous and you may see these in 2014? it is a two-part question. a lot of the money coming into equities is coming from cash. the money coming out of bonds, it may be unwarranted in terms of people being too nervous. it is hard to say. i am a neck with the person. an equities person. >> thank you for joining us. we are getting auto sales out. ford is down 6.1% in light vehicle sales. motors out general as the bell rhine. ford -- as the bell rang.

general motors doing better. for down 6.1%. that compares to a drop that was more in line with 5.3%. the problem is the light vehicle sales. utilities did not do quite as well as the trucks. the winter weather is keeping people from buying the ford focus nameplate, but they will come out and buy the f1 50. they did have a great month for the ford f-150. motors, peopleal not coming out to buy cars. interesting point on general .otors, sales of 19% chevy sales were down. fleet sales made up 25% of

general motors total february volume. those numbers will be made up in march. we will wait and see how it goes next month. beer companies will do anything to make a buck, including a new focus on good old-fashioned cheap american beer. an action star takes the top spot at the box office. were the numbers for "nonstop" this weekend? stay "inp banker go -- the loop." ♪

>> here is a look at the top tech stories on bloomberg west radio. shaking things up. satya nadella hires mark penn as the new microsoft cso. three executives have left the company.

apple is working on technology that allows drivers to use .phones with voice commands it will be available in vehicles as early as this year. it could come as an update to the ios7. "nonstop" has kicked "the lego movie" out of the top spot. catch all of the latest in tech and media on bloomberg west. big beer makers. we have been on a beer binge lately. a lot of focus on craft ale and import. now they're realizing they cannot ignore good, old-fashioned cheap beer.

joining me now is duane stanford. these beer makers say they cannot focus on a high end consumer. they cannot ignore the low end. now, theyew years have in looking at focusing a lot on craft beers and siders. -- ciders. try to gett is to better margin as some of the volume has tapered off. that includes putting the marketing dollars towards those brands as they try to get them off the ground and try to compete better with craft beers. that is what you see of late. they are finding that hurts them a little on the low end. what are they doing to get them back into the fold? newheir land -- launching

ads. what they want to do is been more so as the consumers start to come back into the market, a lot of these lower and beer drinkers were actually drinking less. are hard-core consumers, but they are drinking less. as jobs come back, they will spend more. beer companies are racing to try to get them into their brands and get them drinking their beers before they go to a competitor. is to be madeney here? how big of a market are we talking about? largest beers are the segment in the market. these are close behind. what you find is that these beer drinkers are very loyal.

they go by 24 packs and stick them in the refrigerator. or they have also found is that millenial's into craft beers still buy some of these economy beers because when they are home kicking back, maybe they drink something more affordable with their with their friends. trying to look cool and have an image. they want to drink some of the craft beers. >> we will see if that works. duane, thank you so much. duane stanford of bloomberg news. more russian troops move into ukraine over the weekend. a prompt the obama administration to warn that it is considering economic sanctions against russia. we will have more on this developing story. stay "in the loop." ♪

>> nobody is going to war over

ukraine. economic sanctions is the primary tool for influencing russia. mike mckee says that unfortunately, it is a very weak will. the standoff or you have the two gunmen and have their guns out of the same time. they can make it painful for russia, but it will be pay for -- painful for the sunwest at the same time. east and the west at the same time. they could pressure the russians with trade sanctions, but it will hurt ve you just as much. the u.s. barely registers as a trade partner.

down the road, before this has any affect, it was a very mild winter in europe. there is talk of freezing russian oligarch bank accounts. europe is not anxious to antagonize the russians. at stake.ve a lot we have seen the market reaction which has been punishing. how much can european withstand it if they continue to see markets tank? a big drop in an index. ruble against the basket of currencies hits an all-time low. they raise their benchmark interest rates to seven percent today to try to halt that. people say it will not have an effect.

this was a company -- a country that defaulted 1998. markets are down and european banks with exposure to ukraine are getting hit as well. thatn, these are banks owned subsidiaries in ukraine or have a big exposure to russia. me.tay with i want to bring and angela for more perspective on what is going on. she's the director of georgetown university center for eurasian-russian and east european studies. what are the options for both the americans and the europeans? >> they are not very great. from the u.s. point of view, we do not have much of an economic relationship with russia. we have the possibility of officials'fferent bank accounts making it different for -- difficult for

people that own property to come here. other financial sanctions in terms of the stock market. it is very difficult to do that. the bottom line is that we do not have many options at all. , the prime goal is to make sure this does not spread into a civil war and this occupation of crimea remains contained to crimea. >> you have also talked about the issue of whether this makes the russian population of untriesring co putinn restful and cause to take more action. georgia has already detached

two provinces of georgia and declared them independent. there are not too many other countries where they could do this. ukraine for russia's the prize and that is what they're focusing on. >> are we dealing with a ?ational vladimir putin angela merkel believes he is not quite into them with reality. i think it is possible that his sources of information are such that he believes ukraine is about to be taken over by fascists and terrorists. if he believes that, he is acting on a different set of information than other people are. >> that could be dangerous. thank you so much. thank you to mike mckee, our economics editor. that does it for "in the loop."

♪

>> bloomberg tv is "on the markets." it is time for futures in focus. gold futures are on the rise. they hit a four-month high as

the conflict between russia and ukraine escalates. thank you for joining us. break down the basics. why do investors flock to gold in times of uncertainty? investors look at gold as a safe haven, relative to putting it into cash. it is a really hard asset versus currency. short-term are traders are buying gold or gold derivatives, expecting the first group of investors to buy gold. john, with all the uncertainty and crimea, russian troops are on the ground, russian warships and jets in the air, what is your take on gold?

bottoming out, but it will have an upside in the short term. between softer economic data as well as geopolitical tension, there's a sense that it could challenge 1400 to 21425 and the not so distant future. 1425. if it rallies above to 1428 per ounce, that is a prophet of $70 per ounce. if the rally happens, you may get $7,000 for every contract that you bought at that level. a spot month is where the seller has to deliver the

commodity to the buyer in one or two days. in the futures market, we refer as a contracts that has the closest delivery date to today's date. in gold, the front month contract is in april. it has the most open contract. that makes it the most liquid. investors need to be focused on that contract for liquidity purposes. you can get out when you want to or get out if you are wrong and get out of the price you want to get out at. next indo you think is the way of events that could impact the price of gold? >> positioning has reflected that. is a risk tohere gold going higher than 1400, it would be that the softer, economic data that we see in the united states carries on after

the weather has warmed up. gold would reprice. john brady joining us and greg bender, thank you for joining us and walking us through the futures market. we will be back "on the markets" in 30 minutes. . .

live from bloomberg headquarters in new york, the this is "market makers" with erik schatzker and stephanie ruhle. >> test of will. vladimir putin pushes into russia, america says there will be costs. >> empire builder. howard lightning is here. he has been building a real estate empire and tells us about his next big move. >> wintering mix. the automobile industry feels the heat from th jack frost. good monday morning. you are watching "market maker " ." >> i and stephanie ruhle, freezing here in new york. it is not a blizzard. is thatom